Sacramento, CA — Governor Jerry Brown is putting pressure on CALPERS to address rising pension expenses.
As retirees live longer, the state’s largest pension fund continues to fall further into the red. The Associated Press reports that Brown sent a letter to the CALPERS Board this week and urged members to acknowledge the changing demographics.
In December, CalPERS staff recommended using new assumptions, that retirees are living longer, in setting contribution rates for the 2016-17 fiscal year. The Governor is asking CALPERS to instead start implementing the changes immediately, and use a phased in schedule over the next three years.
CALPERS is an estimated $45 billion in the red and will grow by $9 billion over the next two years because of retirees living longer, Brown’s letter said. The CALPERS Board will meet next week.